Dollar sits at two-week low amid risk sentiment boost

The dollar stood near two-week lows as safe demand dropped on Wednesday, with investors expecting a pandemic recovery this year, boosted by massive fiscal and monetary stimulus aids.

The dollar index rose to 90.509 in Asian trade on Wednesday, following a two-day fall that pulled it to as low as 90.427.

Traditionally a safe haven, the dollar still dropped against peers on optimism over a U.S. stimulus aid, robust corporate earnings, and faster vaccine rollout.

Traders have been going back and forth over the impact of Biden’s massive fiscal stimulus aid on the dollar.

The greenback rose 0.1% to 104.68 per yen after falling to 104.5 for the first time this month. The euro slid 0.1% to $1.21105 after a three-day gain.

The pound was down 0.1% to $1.3803 after hitting a near three-year high of $1.382 overnight.